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Resolution 5480 - Clarifies Tax Increment Financing Guidelines - SID DebtA RESOLUTION CLARIFYING THE GUIDELINES OF THE CITY OF KALISPELL REGARDING THE UTILIZATION OF TAX INCREMENT FINANCING WITHIN TAX INCREMENT DISTRICTS THAT HAVE PUBLIC IMPROVEMENTS FINANCED THROUGH SPECIAL IMPROVEMENT DISTRICT DEBT. WHEREAS, the City of Kalispell has established a number of tax increment districts pursuant to its authority and the terms of state law; and WHEREAS, the City of Kalispell has also established, pursuant to its authority and the terms of state law, a number of special improvement districts for the purpose of funding certain public improvements; and WHEREAS, a special improvement district on which public improvements were constructed and financed through city debt, secured by and assessed to the properties directly benefitted by such public improvements may also be within a tax increment district; and WHEREAS, the existing tax increment distribution guidelines established by the Council at Resolution No. 4609 and Resolution No. 5262 specifically enumerate the statutorily permissible uses of tax increment that includes the use of such funds for public improvements and establishes the eligibility of businesses that locate or expand within the city that are of a manufacturing, technological, office, professional or technical service nature to receive increment benefits in an industrial or technology tax increment district; and WHEREAS, the Kalispell City Council hereby finds that in instances in which the City establishes a special improvement district and issues bonds for public improvements and also establishes a tax increment district over the same area, it is appropriate that tax increment benefits be considered for otherwise eligible businesses electing to locate and make private investment within the districts for the purposes of paying the special improvement district assessments of that district. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. That the tax increment distribution guidelines for the City of Kalispell shall include the allowable use of tax increment to be the payment of special improvement district assessments on property owned within such special improvement district and within such tax increment district for the benefit of a property owner of an eligible business electing to locate and make private investment within the districts. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 7TH DAY OF FEBRUARY, 2011. Tammi Fisher ATTEST: Mayor l Theresa White City Clerk